Jennifer Smith decides to start a new company that will be operated as a corporation, ComfyShoes Incorporated (CSI), The company will sell comfortable shoes, boots, and sandals for men,women, and children. The articles of incorporation for CSt authorize the company to issue200,000 cumulative preferred shares that pay a dividend of $0.50 per year and 1,500,000common shares,During 2021, CSI completed these transactions and events:Jan. 1Issued 75,000 common shares for a total of $225,000.Issued 10,000 cumulative preferred shares in exchange for a building with amarket value of $100,000.Jan. 10Dec. 31Net income for the year was $100,000 (assume revenueclosed to Income Summary). No dividends were declared.nd expenses have beenDuring 2022, CSI completed these transactions and events:Net Income for the year was $1,000,000 (assume revenue and expenses havebeen closed to Income Summary).Dec. 31Dec. 31Declared cash dividends of $125,000.On January 15, 2023, CSI paid the cash dividends.Part aJournalize the transactions above, including entries to close out the balance in IncomeSummary. Explanations are not required.(Journal entry template on next page)Calculations:

Transactions relating to the Shareholder's Equity includes: i) Issue of Share Capital (Common shares…

Jennifer Smith decides to start a new company that will be operated as a corporation, Comfy Shoes Incorporated (CSI), The company will sell comfortable shoes, boots, and sandals for men, women, and children. The articles of incorporation for CSt authorize the company to issue 200,000 cumulative preferred shares that pay a dividend of $0.50 per year and 1,500,000 common shares. During 2021, CSI completed these transactions and events: Jan. 1 Issued 75,000 common shares for a total of $225,000. Issued 10,000 cumulative preferred shares in exchange for a building with a market value of $100,000. Jan. 10 Net income for the year was $100,000 (assume revenue and expenses have beer closed to Income Summary). No dividends were declared. Dec. 31 During 2022, CSI completed these transactions and events: Net Income for the year was $1,000,000 (assume revenue and expenses have been closed to Income Summary). Dec. 31 Dec. 31 Declared cash dividends of $125,000. On January 15, 2023, CSI paid the cash dividends. Part a Journalize the transactions above, including entries to close out the balance in Income Summary. Explanations are not required. (Journal entry template on next page)

Jennifer Smith decides to start a new company that will be operated as a corporation, Comfy Shoes Incorporated (CSI), The company will sell comfortable shoes, boots, and sandals for men, women, and children. The articles of incorporation for CSt authorize the company to issue 200,000 cumulative preferred shares that pay a dividend of $0.50 per year and 1,500,000 common shares. During 2021, CSI completed these transactions and events: Jan. 1 Issued 75,000 common shares for a total of $225,000. Issued 10,000 cumulative preferred shares in exchange for a building with a market value of $100,000. Jan. 10 Net income for the year was $100,000 (assume revenue and expenses have beer closed to Income Summary). No dividends were declared. Dec. 31 During 2022, CSI completed these transactions and events: Net Income for the year was $1,000,000 (assume revenue and expenses have been closed to Income Summary). Dec. 31 Dec. 31 Declared cash dividends of $125,000. On January 15, 2023, CSI paid the cash dividends. Part a Journalize the transactions above, including entries to close out the balance in Income Summary. Explanations are not required. (Journal entry template on next page)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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